BlueRush Media Group Corp. (TSXV:BTV), a digital experience and technology leader creating solutions for leading financial institutions announced its financial results for three month period ending January 31, 2018. The company’s overall revenue grew 19 per cent as compared to the previous quarter. As quoted in the press release: “We’re proud to announce almost 20% … Continued
BlueRush Media Group Corp. (TSXV:BTV), a digital experience and technology leader creating solutions for leading financial institutions announced its financial results for three month period ending January 31, 2018.
The company’s overall revenue grew 19 per cent as compared to the previous quarter.
As quoted in the press release:
“We’re proud to announce almost 20% quarter over quarter growth. We’ve made investments in our sales, marketing and R&D. We have been able to hit important product milestones as well as achieve some important project wins as we continue our progression to a SaaS company,” said Steve Taylor, BlueRush CEO.
Second Quarter Financial Highlights
- The SaaS portion of revenues increased $27,079 or 5% for the six months ended January 31, 2018 as compared to the six months ended January 31, 2017. Subscriptions and support revenues were $527,105 or 34% of total revenues of $1,546,597 for the six months ended January 31, 2018.
- Management accredits this increase to our continued investment in our core technologies, excellent service delivery and new investments in sales and marketing.
- We continued our transformation from a Digital Marketing Services company into a SaaS-based business. The Company began to make investments in R&D, Sales and Marketing and we have started to realize the benefits of these investments in an aggressive timeframe.
- Within the multi-billion-dollar Financial Technology (Fintech) space, BlueRush’s SaaS-based technologies have demonstrated the ability to drive significant business results in the areas of mortgage origination, loan origination, personalized statements and in enhancing the customer journey for insurance-related products.
Additional Q2 Business Developments
BlueRush secured a number of new contracts that validate the product roadmap for IndiVideo and DigitalReach. Both products are gaining increasing traction in the marketplace including a number of notable projects:
- Three new customers were secured for DigitalReach including a multi-year SaaS contract with a major Canadian multinational insurance company and financial services provider to distribute content to Advisors and Brokers.
- A contract was signed in Chile whereby IndiVideo will be used to provide Interactive and Personalized Video explanations of pension fund statements to over two million pensioners. This deal was sold through a new channel partner in the South American region and so represents both a powerful new use case for IndiVideo as well as a foray into a new market.
- IndiVideo was used as part of a program delivered for an existing Financial Services client to drive increased deposits and loans. This program delivered to the client the largest spike in deposits in the shortest period of time in its history.
- IndiVideo will be deployed by one of the Big Five banks in Canada to drive mortgage origination off of their main website.
- Individeo was adopted for use by one of the world’s largest fund managers to deliver personalized summaries of investment performance for businesses with assets under management. This use case is revolutionary for wealth managers that have been seeking to find ways to leverage digital technology to be of higher value, tailored to each and every client.
BlueRush is actively discussing and creating opportunities with a number of other strategic channel partners that give us access to new market opportunities and allow us to quickly expand our technical footprint.
BlueRush continues to deliver world class Digital Marketing Services that are highly complementary to our SaaS strategy. Projects centered on the creation of product-specific campaigns designed to drive increased business in no fee chequing accounts, deposit products, loans and mortgages. These initiatives surpassed client expectations and delivered best-case results. Two new services clients were added during the quarter.
There was zero churn in our SaaS business. This is evidence of the quality and stickiness of our software and the solutions we deliver. While our subscription revenue dropped slightly from the previous quarter, this was a reflection of the termination of certain website hosting contracts that are classified within our Subscription and Support revenues. Hosting websites represents a small percentage of our recurring revenue and is not a focus going forward and so we see this change as a reflection and validation of our SaaS focus and it is not a concern for Management.
The sales funnel grew by 400% in the quarter. Our sales team has grown under the leadership of Ted Mercer – from a single Sales Executive (SE) in Q1 to a team of five including two Sales Executives, a Channel Partner Manager, a VP sales who will carry a sales quota and two Sales Development Representatives. The quality and resourcing level of the sales team, along with investments in marketing, is expected to allow us to support an aggressive growth agenda in the coming quarters.